From January to September 2009, the company achieved operating income of 33.571 billion yuan, an increase of 26.88% over the same period last year; operating profit of 69.0294 million yuan, down 0.94% from the same period last year; net profit belonging to the owner of the parent company was 59.4545 million yuan, up 2.83% from the same period last year; and diluted EPS was 0.235 yuan. In the third quarter, the company's operating income was 12.374 billion yuan, an increase of 39.69% over the same period last year. The net profit attributed to the owner of the parent company was 22.0116 million yuan, an increase of 30.06% over the same period last year, and the diluted EPS was 0.09 yuan.

Active metal trade led to a 26.88 per cent year-on-year increase in revenue. The company is the largest material and trade center in China and one of the 500 largest material circulation enterprises in China, mainly engaged in the operation and import and export trade of metal materials, energy, building materials, automobiles and other products, of which metal trade accounts for more than 70%. The mode of operation includes distribution, agency, chain operation, international trade and so on. In the first three quarters, the company's operating revenue increased by 26.88% compared with the same period last year, mainly due to the unusually active metal trade and the large increase in metal trade revenue with the steady economic recovery.

The decline in gross profit margin led to a decrease in the growth of net profit. The industry attribute of the company determines that the gross profit margin is low (the average gross profit margin in the previous three years is 1.48%), but its changes have a significant impact on performance. In the first three quarters, the company's gross profit margin was 0.98%, down 0.4 percentage points from a year earlier, resulting in a year-on-year increase in net profit of only 2.83%, much less than revenue growth.

The results in the third quarter were in line with expectations. In the third quarter, the company achieved a net profit of 22.0116 million yuan, in line with expectations, an increase of 30.06% over the same period last year, mainly driven by an increase of 39.69% in operating income in the third quarter compared with the same period last year; a month-on-month decrease of 21.86%, mainly due to a 12.84 million yuan drop in investment income in the third quarter.

The company has a certain growth potential. The subsidiary Shanghai material Trade Center is mainly engaged in spot trading of non-ferrous metal materials, which ranks first in all commodity trading markets in Shanghai. The subsidiary Shanghai fuel Pudong Co., Ltd. has a mid-year capacity of 1 million tons to convert fuel oil, accounting for 65% of the supply in Shanghai's industrial fuel oil market, and has become a fuel oil sales center in Shanghai and its surrounding areas. The Bailian oil depot built by Shanghai fuel Co., Ltd., a wholly-owned subsidiary, which invested 519.88 million yuan, was put into operation on May 8, 2009. the company holds some shares in Pudong Development Bank, Bank of Communications, Shenneng and China Petroleum & Chemical, with a total book value of 123 million yuan at the end of mid-2009. with the rise of the stock market, it is expected to bring considerable investment income to the company.

Profit forecast. We expect the company's net profit belonging to the owner of the parent company to increase by 16.71% year-on-year in 2009-2011, the EPS is 0.33,0.40 and 0.43 yuan respectively, and the corresponding dynamic PE is 40 times, 33 times and 30 times, maintaining the company's "neutral" investment rating.